I heard a piece on ABC FNQ Radio today between CEO Mike Barry and Tully Sugar's CEO. It raised my curiosity in MSF so I downloaded recent announcements and accounts.
The sugar price might be high but has anyone had a good hard look at the accounts of MSF. Its seriously concerning. Seems to me like MSF must do the Tully deal, or any deal to survive. Note the timing of the take-over announcement - minutes before the release of the year end results so they are clearly trying to distract shareholders from the main game.
If that is true, they have some serious issue because from what I know of Tully mill shareholders MSF has got snowballs of paying anything other than top dollar for that busines.
I've had a look at the volumes and its clear that bot trading is keeping the price up. You could take the stock down to $1.30 with an at marekt sell order of 40,000 shares. I might enquire with my CFD provider about taking a short position here... it just seems like its a bit of smoke and mirrors to me. I seems like a classic short opportunity - reminiscent of ABC, CIY, MFS et all.
Just my opinion, DYOR.
MSF Price at posting:
$2.30 Sentiment: ST Sell Disclosure: Not Held
